PepsiCo on Tuesday reported its first-quarter adjusted earnings rose 10%, but the company pulled its fiscal 2020 outlook.
Shares of the company rose less than 1% in premarket trading.
Here’s what the company reported:
- Earnings per share: $1.07, adjusted
- Revenue: $13.88 billion
The Frito-Lay owner reported fiscal first-quarter net income of $1.34 billion, or 96 cents per share, down from $1.41 billion, or $1.00 per share, a year earlier.
Excluding items, Pepsi earned $1.07 per share.
Net sales rose 7.7% to $13.88 billion.
Wall Street anticipated earnings per share of $1.03 on revenue of $13.21 billion, based on a survey of analysts by Refinitiv. However, it’s difficult to compare reported earnings to analyst estimates for Pepsi’s quarter, as the coronavirus pandemic has made it difficult to predict earnings.
Pepsi withdrew its fiscal 2020 forecast, citing “the uncertainties associated with the magnitude and duration of the Covid-19 pandemic on our business.” In February, the company said it expected 4% organic revenue growth and 7% earnings per share growth after stripping out currency fluctuations in 2020.
However, the company is still expecting to repurchase $2 billion in shares and spend $5.5 billion on dividends in fiscal 2020, even as many other publicly traded companies suspend their buyback programs and slash their dividends to preserve cash.